If you’re planning to buy a home, one of the smartest first steps you can take is getting pre-approved for a mortgage. A pre-approval not only shows sellers you’re a serious buyer, but it also gives you a clear picture of how much you can afford—saving you time and helping you focus your search.
What is Mortgage Pre-Approval?
Mortgage pre-approval is a process where a lender reviews your financial situation—income, credit history, debts, and assets—to determine how much they’re willing to lend you. It’s different from a pre-qualification, which is only an informal estimate. A pre-approval carries more weight because it’s based on verified information.
Step 1: Check Your Credit Score
Your credit score plays a big role in the interest rate and loan amount you qualify for. Before applying, review your credit report for any errors and pay down outstanding debts if possible. A higher score can mean better terms and lower monthly payments.
Step 2: Gather Your Documents
Lenders will require specific documents to verify your financial stability. Commonly requested items include:
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Recent pay stubs
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W-2 or 1099 forms
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Bank statements
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Tax returns for the past two years
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Proof of assets (savings, retirement accounts)
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Identification (driver’s license or passport)
Step 3: Shop for the Right Lender
Not all lenders offer the same rates, fees, or loan options. You should shop with at least two different lenders—ideally three—to compare offers. Even a small difference in interest rates or fees can save you thousands of dollars over the life of your loan. Be sure to ask about rate locks, closing costs, and processing times.
Step 4: Submit Your Application
Once you choose your preferred lender, you’ll complete a formal application and submit your documents. The lender will perform a hard credit check and review your financial details.
Step 5: Receive Your Pre-Approval Letter
If approved, you’ll get a pre-approval letter stating the maximum loan amount you can borrow. This letter is typically valid for 60–90 days and can be renewed if needed. Keep in mind, pre-approval is not a guarantee of final loan approval—it’s still subject to a successful appraisal and final underwriting.
Why It Matters
Being pre-approved gives you a competitive edge, especially in hot markets where multiple buyers may be interested in the same property. Sellers are more likely to accept offers from buyers who have financing already lined up.
Bottom Line
Getting pre-approved for a mortgage—and comparing offers from multiple lenders—gives you clarity, confidence, and credibility, making your path to homeownership smoother and more successful.
